Nigerian stocks fell for a second day after JPMorgan Chase & Co.’s decision to exclude the country’s debt from local-currency emerging-market bond indexes sapped demand for assets in Africa’s largest economy.
The Nigerian Stock Exchange All Share Index dropped as much as 2.9 percent on Thursday before paring losses to close 0.2 percent lower at 29,403.12. That followed a fall of 3 percent on Wednesday, the biggest in almost eight months.
JPMorgan will cut Nigeria from indexes tracked by more than $200 billion of funds by the end of October, the New York-based lender said in a statement on Tuesday, citing a lack of liquidity and limited transparency in the foreign-exchange market. As a result, about $3 billion of Nigerian bonds may be sold, according to ETM Analytics.
“The fact that stocks, which aren’t directly impacted by this, are down speaks to the symbolic value of the JPMorgan decision,” Alan Cameron, an economist at Exotix Partners LLP in London, said by phone. “In terms of how it’s shaping perceptions of Nigeria, it’s doing a lot of harm. Otherwise, the equity market probably wouldn’t have fallen this much.”
The All-Share Index has declined 15 percent this year, the most among 14 sub-Saharan African bourses tracked by Bloomberg after Zimbabwe.
Nigeria’s local-currency government bonds rose on Thursday after falling the day before on JPMorgan’s decision. Yields on the nation’s naira debt due March 2024 decreased to 16.26 percent from 16.68 percent, the highest since March 17, according to data provided by the Lagos-based Financial Markets Dealers Association.


http://www.bloomberg.com/news/articles/2015-09-10/nigerian-stocks-drop-yields-surge-on-fallout-from-jpmorgan-exit

H''''''mmmmmmmmm